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304.16-190 Conversion on termination of eligibility.
There shall be a provision that if the insurance, or any portion of it, on an individual
covered under the policy, ceases because of termination of employment or of
membership in the class or classes eligible for coverage under the policy, such
individual shall be entitled to have issued to him by the insurer, without evidence of
insurability, an individual policy of life insurance without disability or other
supplementary benefits, provided application for the individual policy shall be made,
and the first premium paid to the insurer, within thirty-one (31) days after such
termination, and provided further that:
(1) The individual policy shall, at the option of such individual, be on any one (1) of
the forms, except term insurance, then customarily issued by the insurer at the
age and for the amount applied for;
(2) The individual policy shall be in an amount not in excess of the amount of life
insurance which ceases because of such termination less, in the case of a
person whose membership in the class or classes eligible for coverage
terminates but who continues in employment in another class, the amount of
any life insurance for which such person is or becomes eligible within thirty-one
(31) days after such termination under any other group policy; provided that
any amount of insurance which has matured on or before the date of such
termination as an endowment payable to the individual insured, whether in one
(1) sum or in installments or in the form of an annuity, shall not, for the purpose
of this section, be included in the amount which is considered to cease
because of such termination; and
(3) The premium on the individual policy shall be at the insurer's then customary
rate applicable to the form and amount of the individual policy, to the class of
risk to which such individual then belongs, and to his age attained on the
effective date of the individual policy.
(4) Subject to the same conditions set forth in subsection (3) of this section, the
conversion privilege shall be available:
(a) To a surviving dependent, if any, at the death of the employee or
member, with respect to the coverage under the group policy that
terminates by reason of the death; and
(b) To the dependent of the employee or member upon termination of
coverage of the dependent, while the employee or member remains
insured under the group policy, by reason of the dependent ceasing to be
a qualified family member under the group policy.
Effective:July 15, 2008
History: Amended 2008 Ky. Acts ch. 140, sec. 10, effective July 15, 2008. -Created 1970 Ky. Acts ch. 301, subtit. 16, sec. 19, effective June 18, 1970.
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